International Marketing Lego Activity: 1. What Has The Lego Group To The Edge of Bankruptcy?

INTERNATIONAL MARKETING
Lego Activity
1. What has the Lego Group to the edge of bankruptcy?
There were some internal and external factors that leave the company until this
point. In the external part LEGO faced the changes in the global toy market that
wasn’t expected by the company, or at least they didn’t think this would change that
fast. The market was unpredictable and the demand for fad toys shifted rapidly.
The company has to confront the change into the technological era, in which even
little kids prefer to “play” online games or to do something in the computer, cell
phone or any technological gadget that could challenge their knowledge.
At intern level their principal problems were in their supply chain management but
also in their marketing strategies. They have many types of bricks, overloading their
product line which make it very complex for their supply chain system and getting as
a result inventory disparity. Having products with low level of sales increase the
inventory costs, while at the same time they have stock-outs of the fad products
which frustrated their major retailers customers and of course had an impact on the
consumers which didn’t find the products to shop.
On the other hand, the marketing and product strategy on relying on the temporary
success of their brand partnerships with movie franchises also hurt its bottom line
because they were unpredictable and challenge the forecasts.
The combination of the rising costs related to the supply chain inconsistencies with
the revenues in decline and diminishing revenues from poor marketing and financial
strategies led LEGO to the margin.
2. What would you do throughout the Lego Group in order to turn the company
around?
We would start by creating a consultant group of experts in major markets from

different parts of the world to be in charge of studying the demand and the changes
in the inventory levels so we can create a system to analyze the trends of our own
products and the impact on the inventory.
On the second place, we would subcontract an expert in the supply chain

management and scheduling, to help us support planning, coordinate and
forecasting. It is always a good idea to have an external point of view and
contemplate the entire supply chain, because they can see the details we are
missing.
Develop other brand lines that generate high return ratios, such as a product for
collectors. Here they have to appeal to those who already are loyal fans to the brand
and invest in what they want, giving them the acknowledge of being part of the
LEGO family and make them ambassadors of the brand. All this as a marketing and
public relationship strategy that call the attention of the common people and prepare
basic sets for they to start in the world of construction of LEGO.
Study the technological trends in many areas, investing in science, architecture,

construction and many other, giving to the community and organizations many more
options of approach to his products. The idea must be to get new contracts with
many companies to help them maybe with learning of new employees, helping with
the approach to the people making a more friendly instruments to work with.
Redefining or defining who is the target and do a Marketing research to understand

what the market is looking for, where they buy, what they buy and why they do it.
Investing in innovation and product development to improve what consumers are

looking for and offer the best solution. Add the technology to Lego, create new things
like 3D games, holograms, virtual reality, create a way of play with Legos mixing
physical product with digital things like nintendo Wii where you are doing physical
things but all is in a screen.
Also, it's not only the product it's how you sell it, so an important part is to improve
the stores with interactive things and add radiofrequency to pay or other new
methods. Create a really good platform online to buy personalized Legos and the
normal line.
Take out the products that don’t benefit the company, the products that people don’t
buy to much and don’t have revenues to the company or small revenues. Don’t
create new products and leave them all in inventory, create special things, things
depending on the season, trends, movies, etc. but limited edition.

International Marketing Lego Activity: 1. What Has The Lego Group To The Edge of Bankruptcy?

Uploaded by

Copyright:

Available Formats

International Marketing Lego Activity: 1. What Has The Lego Group To The Edge of Bankruptcy?

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

International Marketing Lego Activity: 1. What Has The Lego Group To The Edge of Bankruptcy?

Uploaded by

Copyright:

Available Formats

INTERNATIONAL MARKETING

1. What has the Lego Group to the edge of bankruptcy?

We would start by creating a consultant group of experts in major markets from

On the second place, we would subcontract an expert in the supply chain

Study the technological trends in many areas, investing in science, architecture,

Redefining or defining who is the target and do a Marketing research to understand

Investing in innovation and product development to improve what consumers are

You might also like